Loans for Apartments:
Since April of 2000 Caffrey & Company LLC has been helping real estate investor’s nationwide find the best loan product for commercial real estate investment properties. Call for great rates for commercial and multifamily loans in Houston, Texas. Caffrey & Company LLC has a special focus in a Houston apartment loan. The most attractive, non-recourse loan terms start at $1,000,000 for multifamily properties. Therefore, if you are looking for low interest rates, a non-recourse loan up to 80% of value (Over $5 million leverage up to 83% to 85% is available) you are at the right place.
Multifamily Loan Underwriting:
Each loan product has unique underwriting requirements. Above all, how the loan data is presented to the lenders can have a negative or positive impact on pricing and loan proceeds. We offer this expert loan underwriting for a Houston apartment loan. Therefore, to help achieve the best pricing and loan terms for commercial real estate investment. We encourage our clients to submit key property level data for a free loan underwriting review. This initial loan underwriting normally takes less than one business day for us to respond with several apartment loan options for you to consider. Here is a short list of property level data that would aid in providing a loan quote:
Required Underwriting information needed:
- Last two years and Year-To-Date detailed Profit and Loss statements (in addition a trailing 12-month P&L is best if available) on the apartment complex.
- Current Rent Roll
- Brief narrative description of the property.
- If available a few electronic photos. Or a copy of the real estate agent’s marketing package.
- What is the purpose of the loan? Acquisition, Refinance, cash out, reposition the property (renovations).
Next we will need to know your objective, how much do you wish to borrower on the apartment complex? Is this a long term investment or short term investment? In other words outline your loan request.
We understand the financing of an apartment complex is a very important component of the investment. Therefore, we encourage our client to send us details on the property before finalizing the purchase and sale contract for an indication of the type of loan that might be available to a particular property.
Fixed Rate Loan Terms are Available for Multifamily Properties:
Loan terms are available from 3-years up to 35-years (40-years for new construction on loans over $5 million). The Apartment buildings can be Garden Style, High Rise, Age Restricted, Student Housing, Section 8 Tenants and subsidize properties. There must be at least 5-units. If you have several buildings all with five or more apartment units that you wish to place under one loan no problem, the buildings should be within 3 to 5-miles from the other properties for best loan terms.
How long will it take to close the Loan?
The closing process normally takes between 45 and 55 days to close the loan. Closing costs vary between loan products. Before you put any funds out we will provide a detailed estimate of the anticipated closing costs. At this stage you will know the loan product, the loan terms, and the anticipated closing costs to allow you to make an informed decision before moving forward.
Houston Multifamily Market:
1Q2021 Houston Multifamily Market Report:
Over the past five years, Houston has seen an increase of 212,000 new households, which is second in the US. Houston’s economy has been growing over that same period due to the state’s lenient business policies. However, the Houston economy was affected more than most during the shutdown due to its strong presence in the energy sector. At the height of the pandemic, oil prices plummeted to negative numbers and limited travel equated to limited energy usage, which devasted Houston’s energy corridor. During this period, 365,000 jobs were lost as Houston’s unemployment rate went from 3.8% to 14.7%. Luckily, Houston was able to have an accelerated reopening and recover many of the jobs lost but the energy sector is still slow to recover as travel is still limited. Although the energy sector employment is expected to remain volatile for some time, the Houston economy is expected to fully recover by the end of 2021 as the other US cities begin to open back up and travel is returning to pre-pandemic levels. 240,000 new households are expected to arrive to Houston by 2025 and the median home price rose 13.4% in 2020, which should increase the demand for apartment renters in the area. The increasing migration and lenient business policies should draw in business to the metro, which will again increase the demand for high-end apartments in or around the downtown area of the city. A majority of the new inventory in the metro is expected to go to the Northwestern submarket where the area’s inventory is set to grow 40 percent over a two year stretch.
By the numbers:
In 2021, employment is expected to grow by 2.7 percent with 87,200 new jobs being created, this is falling short of the net 138,000 jobs lost during 2020. In 2021, apartment inventory will grow by 2.5% as 18,200 new units will be added. Due to the large supply, vacancy is expected to increase by 30 basis points to 7.3%. Due to the supply outpacing the demand, effective rent is expected to decline 0.8% to $1,086 per month. In 2020, average sales price rose 7 percent and average cap rates fell 20 basis points to 6 percent.
In conclusion can read about specific loan products. Freddie Mac, Fannie Mae, HUD/FHA, Commercial Mortgage Back Securities (CMBS) and other loan products. Want more details and sample interest rates for apartment check out Interest Rates for Apartment Loans also on our web site: Apartment Loan Interest Rates.
Keep Caffrey & Company in mind when searching for a Texas lender for apartment loans. Have a question please call: Mike Caffrey (913) 402-7077 or email: Mike@CaffreyLoans.com
On our web site you can read about specific loan products: www.caffreyloans.com/loan-products, offered by Freddie Mac, Fannie Mae, HUD/FHA, Commercial Mortgage Back Securities (CMBS) and other loan products. Want more details on sample interest rates for apartment check out Interest Rates for Apartment Loans also on our web site: www.caffreyloans.com/apartment-loans.